As Samsung reveals a record quarterly profit, the gulf between the South
Korean electronics giant and rivals Apple appears to be widening in China.

Samsung's net profit was £4.5bn in the April to June quarter, representing a 50 per cent rise from this time last year. Two thirds of the entire operating profit was generated by its smartphone and tablet operation.

Research firm IDC estimated that Samsung shifted 72.4m smartphones during the three months, compared to Apple's 31.2m iPhone sales. Samsung does not reveal its official smartphone sales, more than 10m Galaxy S4 handsets within a month of release.

Despite the profits for six consecutive quarters, Samsung said it was wary of smartphone sales slowing. A statement by head of investor relations Robert Yi warned of the threats posed by difficult economic conditions and rival companies.

He said: "Entering into a typically strong season for the IT industry, we expect earnings to continue to increase. However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products."

Meanwhile, Apple's revenue in Greater China dropped 43 per cent to $4.65bn from the previous quarter, an additional 14 per cent lower than a year ago.

The South Korean firm is better established within the country, opening its first Beijing office in 1985. Conversely, California-based Apple only started making significant headway into the lucrative market since the launch of the first iPhone in 2007.

Samsung currently holds a 19 per cent share of China's $80bn smartphone market; a full 10 per cent ahead of Apple which has fallen to fifth in terms of China market share. China is now the biggest smartphone market in the world, followed by the US and India, and Samsung has ousted Nokia as the world's biggest mobile phone maker.

The company sells millions of mid-range priced handsets in China each year, constantly releasing a stream of new and updated models. Yet Samsung also caters to the burgeoning middle-class luxury market's expensive tastes by releasing models exclusive to China which can retail for up to $2,000.

Apple's high-end products are priced too highly for the average Chinese individual, who earns the equivalent of roughly $640 per month. The company is rumoured to be developing a plastic 'budget iPhone' which may retail for as little as $99, which could cement footholds in China, alongside the company's plans to double the number of Apple stores in the next two years.

A report released in June into the development of new media in China highlighted the growing trend for embracing 24/7 connectivity through microblogging site Weibo and the Chinese equivalent to What'sapp WeChat. Samsung's smartphones are produced with Weibo installed, whereas iPhones are required to download the application.

Analysts and brokerages are predicting sales of smartphones will plateau due to market saturation and the preference of emerging markets towards cheaper models, which may force Samsung to cut prices and harm future profits.